GBP/USD Price Forecast – The British Pound Slams Into Major Resistance

British Pound vs US Dollar Technical Analysis

The British pound initially rallied during the trading session on Thursday but gave back gains as we reached near the 1.20 level. This is an area that of course is going to attract a lot of attention, due to the fact that the market has recently bounced from there, so “market memory” could come into the picture in this general vicinity. Furthermore, we will have to pay attention to interest rates in America, and if they continued to climb. Ultimately, the British pound is suffering at the hands of the US dollar, just as most other major currencies are.

The 1.18 level underneath could be a bit of support, and if we can break down below there, the market could go down to the 1.16 level after that. All things being equal, I have no interest in buying this pair, at least not until we break above the 1.26 level, which would be a major trend change. At this point, the market would obviously have gotten through a lot of its noise, but at this point in time, it’s likely that we will see plenty of sellers given enough time.

Ultimately, this is a market that has been very negative, so therefore it’s likely that we will see more selling pressure than anything else. The US dollar has been like a wrecking ball against almost everything, so it’s difficult to imagine a scenario where things change anytime soon. Expect volatility, but I’m looking for signs of exhaustion.

GBP/USD Price Forecast Video 08.07.22

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